Jetstar cutting 10% of domestic flights in January to avoid disrupting customers. Credit: kana hata.

Australian low-cost carrier Jetstar has revealed its plan to cut 10% of its domestic flights to reduce disruption to customers.

The decision was made as part of its contingency plans to manage the industrial action brought by two unions the Australian Federation of Air Pilots (AFAP) and the Transport Workers Union (TWU).

As part of the action, AFAP has already carried out four-hour work stoppages on 14 and 15 December while a range of lower-level bans that began on 14 December will continue until 20 December.

No action will take place from 21 December to 3 January 2020, noted AFAP.

According to Jetstar, the industrial action was initiated over wage and benefit claims.

Jetstar CEO Gareth Evans said: “Industrial action doesn’t change the fact the wage claims being made by the TWU and AFAP are unsustainable. In the case of the pilots, the union is asking for what amounts to a 15% wage increase in the first year in a group where captains earn more than $300,000 a year. For some groups, their salaries would increase by $60,000. We can’t agree to that.

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“The TWU’s claims equate to a 12% increase in costs for Jetstar ground crew who earn around $70,000 per year on a part-time basis and around $90,000 per year on a full-time basis. This is despite the same union agreeing to a 3% wages deal in other parts of the Qantas Group.”

Jetstar is also planning to sell three of its 787-8 aircraft and reinvest the proceeds to sustain the airline’s ongoing profitability.

Meanwhile, AFAP executive director Simon Lutton said: “Assertions by Jetstar that we are seeking a 15% wage increase are simply untrue. The AFAP wage claim is for 3% annual increases to salary.

“We remain ready, willing and able to negotiate an agreement, which balances the needs of both Jetstar and the Jetstar pilots however we cannot do this if Jetstar continues to refuse to resume negotiations.”